Author: Janko Roettgers

  • Netflix on the Wii: The First Reviews Are In

    Netflix started to send out a first shipment of Wii disks last week, making it possible to access its watch Instantly online video on demand offering on the gaming console. A few Netflix customers have already shared their first impressions, and the verdicts are mixed. There are complaints about the video quality, which is much lower than on other Watch Instantly platforms, but others are pretty happy with what’s possible.


    Dave Zatz dug up this video review
    of the service on YouTube that, albeit being a little slow and at times suffering from low video quality itself, shows off a lot of the functionality of Watch Instantly on the Wii. Marcus Penn, who shot the video with the help of his cell phone, appears a little underwhelmed by the video quality of the service, explaining that some titles looked much better on his Tivo’s Netflix client.

    Newteevee reader Matt Hendry sent us his own take on the service, and he was much more forgiving: “(T)he experience is great overall and there was no buffering on my DSL connection like I get with my PC with Netflix and streaming shows on my old Xbox via XBMC,” he wrote, musing that Netflix must have done a lot to optimize streaming for the Wii. One should note that Wii streaming is done at a much lower bit rate that PC-based streams, which could explain some of the buffering as well.

    Hendry did complain about the lack of volume control, and also took issue with the fact that there are no parental controls available for the service. We asked Netflix about this, and the company’s VP of Corporate Communications Steve Swasey got back to us, explaining that the company currently doesn’t have any direct parental control features for Watch Instantly, be it on the Wii or any other platforms.

    What’s your take on Netflix on the Wii? Are you bothered by the lack of HD, or happy to finally have another way to access Watch Instantly? Let us know in the comments!

    Related content on GigaOm Pro: Connected Consumer Quarterly Wrap-Up (subscription required)

  • Happy Birthday, Gnutella: Pioneering P2P Protocol Turns Ten

    Ten years ago this week, online music pioneer Justin Frankel released a little application dubbed Gnutella that enabled file sharing through a distributed P2P network. Frankel, whose previous claim to fame was programming the then hugely-popular Winamp MP3 player software, supposedly named the client after his favorite hazelnut cream spread, and the first version published online was really more of a proof of concept than anything else.

    Still, Gnutella hit a nerve. Napster had been sued three months before, and many file sharers were rightfully fearing that the music industry would eventually prevail in court and force Napster to switch off its servers. With Gnutella, no such switch existed, as the client was allowing direct P2P connections without the help of any centralized server. Add to it the fact that Gnutella, unlike Napster, allowed users to swap videos and software as well as MP3s, and you begin to see why many immediately viewed Gnutella as the next step in P2P file sharing.

    A step, one should add, that made Frankel’s employer AOL more than a little nervous. It only took the Internet giant a day to force Frankel and his colleagues to take down Gnutella – but even that was too long, as countless sites quickly started to first mirror, then build upon Frankel’s official Gnutella client. There’s always been a little bit of mystery surrounding the exact happenings of those days, but some people have been musing that a person with a surprising amount of insider knowledge showed up in one of the first IRC chat rooms dedicated to Gnutella soon after AOL pulled the plug, only to provide some very detailed information about the inner workings of the client’s P2P protocol.

    Speaking of IRC: Early versions of the software didn’t really have any way for users to connect, save for entering another user’s IP address, which is why IRC quickly became an integral part of the early days of Gnutella. It was also in those IRC chat rooms that the myth of Gnutella as a seemingly invincible P2P protocol was born, and the fact that AOL tried but couldn’t contain the software seemed to fit right into that picture. Gnutella was one of the very first P2P apps I ever wrote about, so I lurked in those chat rooms as well, where people were cheering the fact that someone finally found a file sharing solution that couldn’t be shut down. I still remember one IRC user saying: “We’ve started a damn cult again!”

    Only Gnutella wasn’t really ready to be a cult. The network routed search requests from peer to peer, leading to an exponential growth of traffic as its network became bigger. Napster programmer Jordan Ritter described the problem early on in a paper titled “Why Gnutella Can’t Scale. No, Really,” and Frankel himself, who has hardly ever gone on the record about Gnutella, once stated that he was fully aware of “how poorly it would scale” when he released the client.

    Still, Gnutella captured the imagination of many, one of them being Mark Gorton, founder of the New York-based Lime Group. Gorton was at the time pursuing a vision of automating businesses through structured data, and Gnutella, as something that could, for example, distribute real estate listings wrapped in XML, seemed to fit that image quite nicely. Early versions of the Gnutella client of Gorton’s LimeWire venture were still written with this vision in mind, hoping to build a P2P network that could eventually be used to do all kinds of things with which we’re now familiar on the web, thanks to web services.

    LimeWire’s engineers joined a growing group of developers loosely connected through web sites like the long-defunct Gnutella.wego.com (whose admin Gene Kan tragically committed suicide in 2002) and mailing lists like the one for the Gnutella Developer Forum, and one of the first issues to be tackled was scalability. The introduction of a two-tiered system of ordinary clients and so-called Ultrapeers helped grow both the network as a whole and each user’s search horizon. The idea was also later adopted by the developers of KaZaA, whose own take on this two-tiered approach still lives on in Skype’s P2P network.

    Technical improvements like these helped Gnutella to grow, but the competition was quick to catch up. Bram Cohen unveiled a first version of BitTorrent only two years after Frankel had published Gnutella, and BitTorrent quickly became the file sharing client of choice for sharing videos online. Part of BitTorrent’s quick rise to fame was its modular simplicity: Cohen had outsourced much of the search and indexing of files to torrent web sites, only handling the actual distribution of data within the client. Gnutella on the other hand was meant to work without any web server. That made it much more invincible, but also much less accessible to users who migrated from apps and clients to a world of web services.

    Another issue that has plagued Gnutella from the beginning is not technical, but legal. The protocol was supposed to outsmart trigger-happy lawyers, but the mere fact that there wasn’t a central switch to turn off the Gnutella network didn’t stop rights holders from going after people and companies associated with it. Lawsuits and legal threats forced Morpheus, Xolox, Bearshare and a number of other companies and developers to throw the towel.

    LimeWire got sued by the music industry as well in 2006, but that hasn’t stopped the company from continuing with the development and monetization of its client. LimeWire’s client also utilizes BitTorrent these days, but LimeWire’s VP of Product Management Jason Herskowitz told me during a phone conversation that Gnutella has “worked really well” for the company, and that its engineers are looking into ways to make Gnutella once again more attractive to developers by exposing some of its functionality through web services. “There is still a long future ahead for Gnutella,” he predicted.

    Not everyone agrees with that outlook. Adam Fisk, who was hired by LimeWire as one of its first developers in the summer of 2000, but left the company in 2004 to eventually start his own P2P venture dubbed Littleshot, believes that some core assumptions of the Gnutella protocol are outdated. “I don’t think that distributed P2P search makes any sense,” he told me, explaining that the very server-less search functionality that made Gnutella superior to Napster also ended up being its biggest burden, and that it would be much easier to have servers handle search and just use P2P to deliver data – a recipe that has already helped BitTorrent succeed.

    Sure, LimeWire and some other Gnutella clients could still stick around for a long time, Fisk admitted, but he was skeptical that we would ever see any significant new project based on Gnutella. “That would be shocking,” he said.

    Photo courtesy of (CC BY-SA) Flickr user Jessica  Diamond.

    Related content on GigaOm Pro: What’s Next for the Cloud? Distributed Architectures (subscription required)

  • What Would You Want From a Google Set-Top Box?

    Google has partnered with Sony, Intel and Logitech to develop a yet-unannounced product called Google TV, according to an article by New York Times technology writer Nick Bilton. Google TV will be based on Android, according to Bilton, and could come in the form of a dedicated set-top box or a software platform that could be deployed on Internet-connected TVs and similar devices, directly competing with solutions from Vudu, DivX and Boxee.

    Details about Google TV are still scarce, as Bilton dind’t get any of the companies involved to go on the record. However, it looks like Google TV will be open to third-party app developers in much the same way the company’s Android operating system is today. From the article:

    “The companies appear to be hiring for Android-related jobs. Intel, for example, has listed jobs for senior application engineers with Android programming experience who can help extend Intel’s technology ‘from PC screen to mobile screen and TV screen.’”

    Google TV will apparently be based on Intel’s Atom processor, and the interface will essentially be based on a version of Chrome, which should open the door for web app developers as well as content platforms to get a foothold on the product. In fact, Bilton reports that a prototype set-top box built by Google is capable of playing back content from Hulu.com — a feature that could cause for some tension within the industry, as Hulu’s owners in the past have tried to block similar technology from Boxee.

    Speculations about an Android-based TV product most recently surfaced when the Wall Street Journal reported that Google teamed up with DISH to test a new, Android-like software on the satellite provider’s set-top box. It’s unclear, however, if the two products are related.

    Still, given the fact that many indicators point to Google gearing up for a TV platform launch, we’re interested to hear from you: What would you like to see on Google TV? Are there any specific Android apps that you’d think would work really well on the big screen? Anything missing from the Boxee Box that only Google could deliver? Or do you want to keep Google out of your living room altogether? Let us know in the comments!

    Related content on GigaOm Pro: With TV Apps, Over-the-Top Video Gets New Backers (subscription required)

  • Sorry, HTML5 Crowd, Flash Ain’t Dead Yet

    Microsoft launched a site dubbed the MSN Video Player in the U.K. Thursday that aims to be something of a U.K. version of Hulu, featuring TV shows like Peep Show, League of Gentlemen and Doctor Who. It’s pretty standard fare, as far as British online TV content is concerned. In fact, the recently-launched Seesaw platform offers an almost identical catalog. However, there’s one feature worth noting: MSN Video Player uses Microsoft Silverlight to stream video if possible, but it defaults to a Flash-based player for users without Silverlight.

    That’s an important departure from Microsoft’s earlier habit of forcing users to download Silverlight to access any content at all, and it acknowledges that Silverlight is still far from being as omnipresent as Adobe’s Flash.

    MSN Video Player isn’t the only site that has adopted such a dual strategy for Silverlight and Flash, and Adobe has been making inroads with content providers previously signed up with Move Networks as well. YouTube and some other sites have recently been experimenting with HTML5, and Apple’s decision to ship the iPad without Flash has gotten some people to wonder whether a big switch to HTML5 and H.264 is on the horizon. But for the time being, it looks like Adobe is stronger than ever.

    Visit the MSN Video Player site without Silverlight installed on your machine, and you’d barely notice a difference to other Flash-based platforms. Videos start in Flash without any hiccup, or warning message for that matter, and playback in full-screen mode isn’t an issue either.  Granted, the site does feature a small button labeled “MSN Video Player works best with Silverlight” somewhere in its upper left corner, but honestly, it’s barely noticeable, and there’s no explanation as to how installing it will improve the experience.

    The MSN Video Player site isn’t alone with offering Flash as a substitute for Silverlight. March Madness On Demand, a CBS-affiliated site that is expected to serve tons of live streams as the NCAA Men’s College Basketball Tournament goes underway starting this Sunday, also offers a Flash stream, albeit with a lower bit rate than their Silverlight player is going to offer. One reason for CBS’s reluctance to go all out with Silverlight could be that NBC has been taking a beating for forcing users to install Silverlight ever since the 2008 Olympics.

    Biut what about HTML5? Google rolled out a test of the standards-based way of playing video straight in your browser without any plug-in in January, and Wikipedia is gearing up for a major HTML5 video roll-out across its site as well. However, differences about the codec used in various implementations have delayed the adoption of HTML5, and advertisers haven’t signed on to the format yet either, making it unlikely that it will be chosen as a default solution by any of the big commercial platforms any time soon.

    Flash, meanwhile, continues to make inroads. This week, ESPN announced that it is dumping Move Networks for MLB Advanced Media, a switch that includes transitioning from Move’s video plug-in to Flash. ESPN isn’t alone in abandoning Move for Flash — Fox.com left the erstwhile high-flying start-up in January for Flash delivered by Brightcove, and ABC.com is reportedly working on a similar transition.

    The fact Move lost all these high-profile customers may have a lot to do with issues related to pricing and the overall direction of the company; the fact however that those customers went right back to Flash, and not to Silverlight, should give HTML5 supporters pause. It was easy for the FSF to get headlines when it recently suggested killing Flash. Following through with that goal could prove to be much harder.

    Image courtesy of Flickr user Cameron  Russell.

    Related content on GigaOM Pro: What Does the Future Hold For Browsers? (subscription required)

  • Babelgum Founder Arrested in Money Laundering Probe

    Babelgum founder Silvio Scaglia was taken into custody by Italian police last Friday. Law enforcement officials had issued a warrant for Scaglia’s arrest earlier last week as the result of a wide-scale money laundering investigation, and he is expected to be questioned as early as tomorrow, according to a BusinessWeek report.

    Scaglia founded Babelgum in 2007 and has been single-handedly bankrolling the London-based video startup ever since. A Babegum spokesperson went to great lengths today to tell us that the investigation won’t have any negative impact on the company. “Babelgum’s business plan is fully funded for 2010 and beyond,” she said, without going into specifics. Still, the arrest isn’t exactly helping the startup that has been struggling to find its place in the online video world for some time.

    Italian law enforcement officials allege that Scaglia was part of a 2 billion euro ($2.7 billion) tax fraud and money-laundering scheme during his time at Fastweb, the Italian ISP he founded in 1999. They issued a total of 56 arrest warrants last week, and the Financial Times is reporting that police confiscated a number of paintings and other works of art that were purchased with the fraudulent money. Scaglia was abroad when officials issued the warrant, but returned to Italy Friday and was taken into custody at the airport.

    Babelgum’s spokesperson refused to provide details about the amount of money Scaglia has invested in the startup so far.  The company announced in 2008 that Scaglia had invested 50 million euros and was planing on shelling out another 40-60 million euros annually throughout 2010. All in all, Scaglia committed to spend as much as 350 million euros on Babelgum.

    The company has shifted focus multiple times in recent years. Babelgum originally emerged as a competitor of the P2P video service Joost, but shifted to web-based streaming early last year. It originally envisioned itself as a destination for full-length indie feature films and documentaries, but has recently been investing more money in original short-form web content like the viral video hit Little Jersey Shore. It’s also been securing deals for exclusive music video premieres from bands like Coldplay and Weezer, potentially competing with music video venture VEVO.

    Babelgum significantly reduced its staff at the end of last year, shuttering its Dublin headquarter as well as its Nice, France-based R&D office. It also reduced staff at its New York office. The company called the cuts result of its growing focus on content, and its spokesperson went out of her way today to assure me that these efforts are not hampered by the investigation. “Mr. Scaglia’s assets have NOT been seized and the company’s functioning and effectiveness has not been impacted in any way,” she wrote in an email (emphasis in the original), adding that Babelgum’s operations are not part of the investigation.

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  • Wal-Mart is Buying Vudu

    Wal-Mart is buying over-the-top video company Vudu, according to a report by the New York Times. NYT technology writer Brad Stone reports that both companies have started to inform Hollywood studios and TV manufacturers about the deal. Financial details are not available, and a Vudu spokesperson told us he wasn’t able to respond to our request for comment just yet.

    The first rumors of Wal-Mart taking over Vudu appeared in early January, and the deal certainly does make sense for the retail giant. Vudu has been busy forging alliances with CE makers and announced deals with Mitsubishi, Sanyo, Sharp, and Toshiba to embed its app platform on their devices in January. This should give Wal-Mart almost instant access to a large part of the consumer electronics market.
    Vudu was founded in 2004 and released a set-top box for web-delivered video in 2007, but the product was unable to gain traction despite a retail partnership with Best Buy. Vudu eventually shifted to providing an embeddable platform for CE makers, and finally stopped selling its set-top box this month.

    Wal-mart hasn’t had much luck with online video either. The retailer started a movie download service in early 2007, but its efforts were hampered by a limited catalog, DRM restrictions and a lack of options to watch the downloaded content on the big screen. The download service closed shop only months later.

    Fast forward to 2010, and the picture looks decidedly different. Connected TVs are set to go mainstream, and Vudu has deals in place that will put its software on TVs or Blu-ray players from seven of the top nine device manufacturers. It’s unclear what the acquisition will mean for these deals, but one could imagine that Wal-Mart would be interested in running Vudu as an independent unit for the time being, if only for the fact that retail competitors like Best Buy might shy away from selling TVs with Wal-Mart branded software.

    Either way, the acquisition could put some serious pressure on companies like Roku and Boxee that are providing competing video and app platforms and devices as well as download services like Apple’s iTunes store and Amazon’s VOD service. Our own Ryan Lawler recently summed it up this way when rumors of the acquisition first surfaced:

    “No one would be in a better position to own the living room than Wal-mart, the company that could sell you a TV and could also sell you the video you want to watch on the TV.”

  • Alan Kay: With the Tablet, Apple Will Rule the World

    Computer pioneer Alan Kay isn’t known for buying into hype. Credited with inventing the concept of the laptop back in 1968, Kay has been lambasting computer makers for not maximizing its potential ever since. One device, however, might get close to even Kay’s high standards: The tablet computer that Apple is expected to unveil tomorrow.

    Kay’s interest in Apple’s upcoming tablet is only natural. His 1968 Dynabook is widely regarded as the conceptual basis of today’s notebooks; indeed, the first cardboard model of the machine featured a tablet-like form factor. And he went on to become part of a small team of computer scientists at Xerox PARC in the 70s that invented much of our current computer technology, including the graphical user interface that Steve Jobs famously fell in love with during a visit to the facility. I interviewed Kay late last year, and while he didn’t mention the tablet by name, he did share a story about the unveiling of the iPhone, to which Steve Jobs invited him in early 2007:

    “When the Mac first came out, Newsweek asked me what I [thought] of it. I said: Well, it’s the first personal computer worth criticizing. So at the end of the presentation, Steve came up to me and said: Is the iPhone worth criticizing? And I said: Make the screen five inches by eight inches, and you’ll rule the world.”

    It’s not just the screen size of Apple’s upcoming tablet that will please Kay, but the fact that Apple is reportedly selling its tablet with a 3G data plan. This fits right in with Kay’s vision of using computer technology for education, a goal he’s been championing ever since he came up with the idea of the Dynabook. In fact, it’s been the challenges faced by the One Laptop per Child project in particular, for which he’s an adviser, that have solidified his believe that the PC industry needs to move away from just selling hardware and towards a service-based model that could be used to establish an educational infrastructure. “It’s all about long-term, sustaining relationships,” he told me, something that mobile phone companies have been practicing for years. Apple’s tablet could be the first major computing device aside from today’s smartphones to move towards such a service-based model.

    Kay still wasn’t sure whether Apple would actually come out with a tablet when I talked to him late last year, noting that such a device could theoretically compete with the company’s iPhone business. But, he added: “I bet a thousand dollars that they had a five-by-eight-inch version for the last couple years in house.”

    Post image courtesy of Flickr user jeanbaptisteparis.

  • RealNetworks CEO Rob Glaser Steps Down, One Day After COO Resigns

    Longtime RealNetworks CEO Rob Glaser has stepped down, just one day after the company announced the resignation of COO John Giamatteo. Glaser said in a press release issued by RealNetworks that he felt it was time to step down as CEO after leading the company for almost 16 years, but he would remain with Real as chairman of the board. Real’s general counsel, Robert Kimball, has been appointed as president and acting CEO. Both positions are permanent, according to RealNetworks spokesperson Bill Hankes.

    Hankes denied that the two announcements were in any way connected, but the timing is a little curious. RealNetworks has been struggling with parts of its business in recent years. It announced the spin-off of its gaming division in 2008 and has failed to get consumers interested in its subscription music service, Rhapsody. Its former dominance in the video streaming space has been eroded by competing content offerings and the dominance of Adobe’s Flash format. Finally, the company was just dealt a legal setback in its court battle with major Hollywood studios that have successfully prevented it from selling software capable of copying protected DVDs.

    Glaser founded RealNetworks in 1994, then incorporated as Progressive Networks, and had been leading the company as CEO ever since. RealNetworks became an early leader in the streaming audio and video software market, but has been losing steam in recent years with the growing dominance of Adobe’s Flash for web videos.

    Real got a huge influx of cash under Glaser’s watch when the company settled an antitrust lawsuit with Microsoft in 2005, resulting in Redmond paying $761 million to Glaser’s company and promoting its subscription services. The most recent quarterly revenue results came in lower than the previous year, however, with Real bringing in revenue of $140.3 million in the third quarter of 2009, compared to $152 million in the same period of 2008. Year-end results are scheduled to be announced in mid-February.

    COO John Giamatteo’s exodus only became public through a SEC filing yesterday, and reasons for his departure were not immediately apparent. However, it now seems like he’ll be leaving RealNetworks for a new job. The company currently doesn’t have a successor for its COO position in place.